Taxation Law

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

TAXATION LAW1
Table of Contents
Answer to Question 1.................................................................................................................3
Answer (a)..............................................................................................................................3
Answer (b)..............................................................................................................................3
Answer (c)..............................................................................................................................3
Answer (d)..............................................................................................................................3
Answer (e)..............................................................................................................................3
Answer (f)..............................................................................................................................4
Answer (g)..............................................................................................................................4
Answer (h)..............................................................................................................................4
Answer (i)...............................................................................................................................5
Question to Answer 2.................................................................................................................5
Answer to question 3:.................................................................................................................7
Answer to question 4:...............................................................................................................10
Answer A:............................................................................................................................10
Answer B:.............................................................................................................................11
Answer C:.............................................................................................................................11
Answer D:............................................................................................................................13
Answer to question 5:...............................................................................................................14
Answer A:............................................................................................................................14
Answer B:.............................................................................................................................14

TAXATION LAW2
Answer C:.............................................................................................................................15
Answer D:............................................................................................................................15
Answer E:.............................................................................................................................16
References:...............................................................................................................................17

TAXATION LAW3
Answer to Question 1
Answer (a)
Taxation Ruling TR 2019/1 covers the rules set by the commissioner on company to
pursue its business with a sense of small business enterprises within the section 23 of IT
Rates Act 1986 applicable from the income years 2015-16 and 2016-117. Addition to this, it
reflects section 328-110 of the IT Assessment Act 1997.
Answer (b)
Division 30 of the Income Tax Assessment Act 1997 outlines the legislation regarding
deductibility of gifts or contributions2.
Answer (c)
The top tax rate applicable to a resident taxpayer in the current tax year 2019-2020 is
45%.
Answer (d)
In respect to car and motorcycle. Income Tax Assessment Act 1997 within the Section
118-5 states that, capital gain or loss making on this be disregarded. Further, under division
108 Car or motorcycle is treated as a CGT Asset. If it is an antique, then it comes under
“subsection 108-10(2)” and in respect to use these assets for personal use it comes under
“subsection 108-20(2)”. Any capital gain or loss make on this will be disregarded and hence,
exempted.
Answer (e)
Under the “IT Assessment Act 1997-sec 104.20”, CGT event C1 s104-20 tax comes
into existence when the lost or any destruction happens to the CGT asset that a person owned.
1 Taxation Ruling TR 2019/1
2 Division 30, Income Tax Assessment Act 1997 (Cth)